| Case ID |
0c1272e6-363b-4275-b41b-0fb580b61ee2 |
| Body |
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| Case Number |
Civil Petition No. 514 of 2007 |
| Decision Date |
Jun 11, 2009 |
| Hearing Date |
|
| Decision |
This petition is dismissed and leave to appeal is refused by the Supreme Court of Pakistan. The court found no irregularity or infirmity in the impugned judgment of the Lahore High Court, which had allowed the Writ Petition No. 6846 of 2006 filed by the respondent and set aside the order dated 10-6-2006 by the Collector relating to sales tax filings. The Supreme Court affirmed that the order issued under Section 45-A of the Sales Tax Act, 1990 by the Collector to reopen the Order-in-Original was within the legal authority and its subsequent set aside by the High Court was upheld as there was no procedural or substantive error. The Court noted that the Deputy Collector (Adjudication) was not subordinate to the Collector and that the Powers under Section 45-A remained in force until amended by the Finance Act, 2005, which had a prospective effect and did not apply to the instant case. As such, the Supreme Court did not find any basis to allow the petitioner to appeal the High Court's decision. |
| Summary |
In the landmark case 'Civil Petition No. 514 of 2007' decided on June 11, 2009, by the Supreme Court of Pakistan, the Federation of Pakistan, through its Secretary at the Federal Board of Revenue, Islamabad, challenged the decision of the Lahore High Court concerning sales tax liabilities imposed on Messrs New Ammur Industries, Lahore. The core of the dispute revolved around the application and interpretation of Section 45-A of the Sales Tax Act, 1990, which grants the Collector the authority to call for and examine records pertaining to sales tax proceedings. The High Court had previously set aside an order dated June 10, 2006, which involved the reopening of the Order-in-Original related to sales tax obligations. The petitioners contended that the Collector had exceeded his jurisdiction in issuing the reopening order without lawful authority, while the respondents maintained that the Collector acted within his legal powers. The Supreme Court meticulously reviewed the statutory provisions and the sequence of administrative actions, including the amendments introduced by the Finance Act, 2005, which were deemed to have a prospective effect, rendering them inapplicable to the case at hand. Emphasizing the non-subordinate relationship between the Deputy Collector (Adjudication) and the Collector, the Court concluded that the original Order-in-Original was valid and that the authority invoked by the Collector under Section 45-A was justified. Consequently, the Supreme Court upheld the High Court's decision, dismissed the petition, and refused leave to appeal, thereby affirming the procedural correctness and legal basis of the sales tax demands imposed on the respondent. This decision underscores the judiciary's role in upholding statutory interpretations and administrative functions within their defined legal frameworks, ensuring that tax authorities operate within their prescribed limits. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
FEDERATION OF PAKISTAN,
Federal Board of Revenue, Islamabad,
NEW AMMUR INDUSTRIES, Lahore
|
| Judges |
M. JAVED BUTTAR,
MUHAMMAD FARRUKH MAHMUD,
SAYED ZAHID HUSSAIN
|
| Lawyers |
Malik Itaat Hussain Awan,
M.S. Khattak,
Mian Abdul Ghaffar
|
| Petitioners |
FEDERATION OF PAKISTAN,
OTHERS,
Secretary, Federal Board of Revenue, Islamabad
|
| Respondents |
NEW AMMUR INDUSTRIES, Lahore
|
| Citations |
2011 SLD 242,
2011 SCMR 1414
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990,
Constitution of Pakistan, 1973
|
| Sections |
45A,
185(3)
|